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Author: RandyChev One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 217  
Subject: Re: Accounting for the Transaction? Date: 10/14/2005 11:41 AM
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FedtheFoot,

I've been trying to do the same thing in Quicken. I still haven't got it.

This is a tough one to do electronically but isn't too tough on paper. According to my broker, Fidelity, (which, btw, I don't believe charged me for the transaction):
The cash received are proceeds from the sale of all the ELBO shares.
The amount by which (those proceeds + the value of GME stock received) or put another way (# of ELBO shares * $62.50, which was the value of an ELBO share at 10/7 close) exceed your basis in ELBO is a capital gain. Sorry, I know that was awkward... think back to algebra to decipher those parentheses. This is also the part that confuses Quicken. :-)
And the difference between your proceeds and your taxable gain is considered the basis used for the sale.
The difference between your true basis in ELBO and the basis used for the transaction is carried forward as your basis in GME.

The way I've worded this assumes your basis in ELBO is greater than or equal to $38.15 per share. Over that .... well I'm too tired of messing with these figures.

I'm going by how my brokerage seems to be planning to report this to IRS and trust they are going by info GME/ELBO gave them. I've asked twice for tax info from GME but have yet to receive it.

So the trick to entering this in MS Money or Quicken is to force a lower basis for the ELBO shares sold. Not sure how to do that. I've tried the Quicken boards and personal finance boards here and have yet to find the technical answer that works. They always come up with a different basis/capital gain than what will be reported to IRS. That won't fly.

Anyone else have a clue on this?
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